Consider a three year bond selling for 95310 that pays an 8


Consider a three year bond selling for $953.10 that pays an 8% coupon annually. Over the next three years, interest rates fluctuate, affecting the reinvestment rate of the coupons. The interest rates over the next three years are 8%, 10%, and 12% respectively.

1. What is the bond's ytm?

2. What is the realized compound yield?

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Financial Management: Consider a three year bond selling for 95310 that pays an 8
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